(Aditya Shaw, Intern Journalist): The Reserve Bank of India (RBI) has presented the framework for the formation of the Umbrella Entity, which operates the retail payment system across the country. The central bank has asked eligible companies to submit applications by 26 February 2021. Under the framework, companies with a net worth of over Rs 500 crore can form units linked to retail payment systems. Such units will be allowed to form, manage, and operate new payment systems.
Also, such companies will be allowed ATM, White Label PoS, Aadhaar based payment system. A press release issued by the Reserve Bank of India states, “The Reserve Bank invites applications for umbrella integrity.” Applications can be submitted in the prescribed form (Form A) by the end of the trading period on February 26, 2021. “The operations of the clearing and settlement system for banks and non-banks to Aprambella Inti, any kind of risk Will be allowed to mark.
RBI said that if there is any kind of FDI in the applying company, it will have to meet the capital requirements fixed under the Foreign Exchange Management Act and get the necessary approval in this regard from the competent authority.
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